Local Resources
Qualified Intermediaries (1031 Exchanges)
IRS rules prohibit sellers from taking possession of sale proceeds, so a Qualified Intermediary is required to facilitate a 1031 Exchange.
A Section 1031 Exchange allows certain investment and business real estate owners to defer capital gains taxes by exchanging one qualifying property for another.
Because IRS regulations prohibit sellers from taking possession of the sale proceeds during the exchange process, a Qualified Intermediary (QI) is required to facilitate the transaction.
This page explains what Qualified Intermediaries do, when they are needed, questions you may want to ask before selecting one, and provides regional resources serving Northwestern Colorado and Northeastern Utah.
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What They Do
Qualified Intermediaries assist with delayed 1031 Exchanges; reverse exchanges; improvement (build-to-suit) exchanges; exchange documentation; holding exchange funds; IRS compliance; exchange timelines; assignment documentation; coordination with closing agents; and exchange reporting.
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When You Might Need One
- Selling investment property
- Selling commercial real estate
- Selling rental property
- Selling agricultural property
- Selling land held for investment
- Acquiring replacement investment property
- Multi-property exchanges
- Reverse exchanges
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Why Their Role Matters
IRS regulations require that exchange proceeds remain under the control of an independent Qualified Intermediary during a 1031 Exchange. Failure to properly structure the exchange or meet IRS deadlines may result in the transaction becoming taxable. Working with an experienced Qualified Intermediary can help coordinate the exchange process, prepare required documentation, and facilitate communication between your closing professionals, CPA, attorney, and other advisors.
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Important Deadlines
45-Day Identification Rule
After closing on the relinquished property, replacement property must generally be identified within 45 calendar days.
180-Day Exchange Rule
The purchase of the replacement property must generally be completed within 180 calendar days after the sale of the relinquished property, subject to applicable IRS rules.
These deadlines are established by IRS regulations and generally cannot be extended except in limited circumstances.
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Questions to Ask Before You Hire
- How long have you been serving as a Qualified Intermediary?
- Are exchange funds held in segregated accounts?
- What security measures protect exchange funds?
- What types of exchanges do you regularly facilitate?
- Do you handle reverse exchanges?
- Do you facilitate improvement exchanges?
- What are your fees?
- Will you coordinate with my CPA, attorney, title company, and real estate broker?
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Local Resources Serving This Area
Choosing the right professional is an important decision.Take time to compare experience, communication style, availability, services, and pricing.We're happy to help you think through which types of expertise may be appropriate for your situation.
Western Slope & Colorado
Western Slope Exchange, LLC
Serving the Western Slope
Specialties: delayed exchanges, reverse exchanges, improvement exchanges, agricultural property, water rights, and ranch properties.
First Integrity 1031 Exchanges
Colorado statewide
Specialties: Qualified Intermediary services, Colorado real estate, and coordination with title companies.
Asset Preservation, Inc. (API)
Colorado regional division
Specialties: commercial, resort property, agricultural property, multifamily, and complex exchanges.
Utah & Uintah Basin
1031 Pros
Utah statewide
Specialties: delayed exchanges, reverse exchanges, commercial exchanges, and improvement exchanges.
IPX1031
Utah and Colorado
Specialties: commercial, residential investment, land, and multi-state exchanges.
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Local Title Companies
Title companies do not serve as Qualified Intermediaries.Instead, they coordinate the real estate closing while working alongside the Qualified Intermediary selected by the property owner.
Land Title Guarantee Company
Serving Craig & Steamboat Springs
Closing and title services for Northwest Colorado transactions.
(970) 879-2500Title Company of the Rockies
Serving Meeker & Steamboat Springs
Closing and title services for Northwest Colorado transactions.
(970) 879-8800Uintah Basin Title Company
Serving Vernal & Uintah County
Closing and title services for Northeastern Utah transactions.
(435) 789-2101
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Related Content
Background reading and tools to help you prepare for the conversation.
Western Edge Property Group provides these resources as a convenience to help you begin your research. Inclusion in this directory does not constitute an endorsement or recommendation. We encourage you to compare experience, exchange specialties, communication style, security procedures, and fees before selecting a Qualified Intermediary.
Western Edge Property Group does not provide tax or legal advice. Clients should consult their own CPA and attorney regarding the tax and legal implications of a Section 1031 Exchange.
Thinking About a 1031 Exchange?
A successful exchange requires planning before your property closes. I'd be happy to help you understand how the process works, identify important timelines, and connect you with experienced professionals who can help you evaluate whether a 1031 Exchange is appropriate for your situation.
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